Ohio Medicaid Saved $140 Million In First Two Years After Moving To Single Pharmacy Benefit Manager Model

In the first two years after the Ohio Department of Medicaid (ODM) adopted a single pharmacy benefit manager (SPBM) model in October 2022, the state had net savings of nearly $140 million on its nearly $5.3 billion spent on pharmacy benefits, according to an analysis conducted by Milliman for ODM. The analysis compared ODM spending under the SPBM to what it could have been if ODM had continued to contract with its six Medicaid managed care organizations (MCOs) to provide pharmacy benefit manager (PBM) services. The savings were generated by eliminating duplicative MCO administrative expenses and risk margins across . . .